Aer Lingus has increased its fuel hedging activity to take advantage of favourable jet fuel prices.
The Irish carrier said it had hedged 90% of its estimated 2015 fuel requirement at an average price of $830 per metric tonne, compared to an average hedged fuel price of $954 per metric tonne last year.
The airline’s fuel bill this year is expected to be around €52 million lower as a result despite increased consumption.
The carrier has also hedged 24% of its expected 2016 fuel requirement.
The lower average fuel cost, in addition to the positive effects of staff cost stabilisation achieved through a pension solution and further efficiency measures, will contribute positively to the 2015 results, Aer Lingus said.
“These year-on-year positive effects will be partially offset by the impact of the expected strength of the US dollar compared to the euro relative to the 2014 exchange rate and other cost increases,” the airline said.
“Aer Lingus remains focused on the continued implementation of its marketing and operational strategies.”
The airline’s fourth quarter 2014 trading performance confirmed a previous outlook of a full year operating profit ahead of the previous year’s result of €61.1 million.